No money in federal budget to help fill Toronto's COVID-19 shortfall
There was no money set aside in the federal budget to help Toronto cover a nearly $1 billion COVID-19-related shortfall in its own spending plan.
The city had been hoping that Ottawa would come forward with $235 million in funding to offset 2022 COVID-19 shortfalls, as well as a commitment for hundreds of million more to help it tackle a $933 million shortfall in its 2023 budget due to ongoing COVID-19 costs.
But the budget tabled by Finance Minister Chrystia Freeland on Tuesday afternoon made no such promises.
The provincial budget released last week also failed to include any significant funding for Toronto, other than $48 million to help cover supportive housing costs.
"The 2023 federal budget fails to address the City of Toronto's request for operating budget support,” Deputy Mayor Jennifer McKelvie said in a statement released on Tuesday afternoon. “While I am thankful for past support during the COVID-19 pandemic from the Government of Canada, I'm disappointed the Deputy Prime Minister – a Toronto MP - would ignore a direct commitment the federal Liberals made during the last election to former Mayor John Tory and the City of Toronto.”
The federal government did come forward with funding to help municipalities offset their COVID-19 shortfalls in 2020 and 2021.
McKelvie, however, said that when she spoke with Freeland on Monday she was “very clear” that her government would not be committing to funding ongoing COVID-19 shortfalls.
The deputy mayor did say that Toronto “continues to offer to find an alternative capital ask for housing, transit and climate action equivalent to our 2022 shortfall” but has not yet received any commitments.
“We have been very clear to the Government of Canada what the city's needs are and about the importance of supporting Toronto – the country's economic engine,” McKelvie wrote. “My job right now is to stand up for Toronto and I won't hesitate to fight to make sure our city receives its fair share from the other governments. Our advocacy will continue in the weeks and months ahead.”
Today’s federal budget comes one week after a report from Ernst & Young was released, showing that the city could be facing $46.5 billion in fiscal pressures over the next decade.
That report warned that the city’s financial situation is so dire that its very “fiscal stability and the sustainability of its service levels” will be threatened without action.
CTVNews.ca Top Stories
Prince William says wife Kate is 'doing well'
Prince William said on Friday his wife Kate was 'doing well' in a rare public comment about the Princess of Wales as she undergoes preventative chemotherapy for cancer.
BREAKING Canadian Blood Services apologizes to LGBTQ2S+ community for discriminatory blood donation policy
Canadian Blood Services issued an apology on Friday to the LGBTQ2S+ community for what it now admits was a harmful and discriminatory blood donation policy that prevented sexually active men who have sex with men and some trans people from donating blood and plasma.
BREAKING Toronto mayor hints that WNBA team is coming to the city, marking the first franchise in Canada
Toronto Mayor Olivia Chow says that she is hopeful an announcement could be made soon amid multiple reports that a WNBA team is coming to Toronto in 2026.
Magnitude 4.2 earthquake reported off Vancouver Island's west coast
A 4.2-magnitude earthquake was recorded west of Vancouver Island early Friday morning.
Ontario coroner to investigate death of man who suffered cardiac arrest while waiting in ER
A provincial coroner will be investigating the death of 68-year-old David Lippert, who suffered a cardiac arrest while waiting in a crowded emergency room in Kitchener, Ont.
'Irate male' assaulted Newfoundland officers with block of cheese, police say
Police in Newfoundland say patrol officers were assaulted Thursday by a "very irate male" wielding a block of cheese.
Average hourly wage in Canada now $34.95: StatCan
Average hourly wages among Canadian employees rose to $34.95 on a year-over-year basis in April, a 4.7 per cent increase, according to a Statistics Canada report released Friday morning.
This iconic Canadian song is turning 50
Andy Kim's 'Rock Me Gently' is marking a major milestone, as it celebrates its 50th anniversary.
From outer space? Sask. farmers baffled after discovering strange wreckage in field
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.